Spot Ethereum (ETH) ETFs generated robust trading volumes on their third day in the market, but demand appears to be cooling after an initially strong start. On Thursday, the cumulative trading volume among the funds was about $850 million, according to Yahoo Finance data compiled by The Block Pro Research. This figure is down from $1.05 billion on Tuesday and over $950 million on Wednesday.
The ETFs experienced $133.16 million in net outflows on Wednesday, reversing from Tuesday’s $106.78 million in net inflows. The Grayscale Ethereum Trust (ETHE) recorded $326.86 million in net outflows, once again being the only ether fund to log outflows, according to SosoValue.
Ahead of Thursday’s trading session, the price of ether dropped more than 7% overnight. “The pronounced pullback… is not only unsurprising but expected,” Keyrock’s Justin d’Anethan told The Block earlier Thursday. “The market’s memory is short, but while the spot bitcoin ETFs did push prices higher initially, crypto markets went down.”
At publication time, ether was still down nearly 8% to $3,102, according to The Block’s ETH price page. Over the last 24 hours, it saw $25.9 billion in trading volume.
“After ETPs launch, BTC price was initially depressed from a combination of ‘sell the news’ and large outflows from GBTC,” Bitwise Investment Strategist Juan Leon said in a post on X. “Subsequently, inflows into other ETPs ramped up and price took off.” Leon noted that after two days of trading, ETH is down nearly 10%. Similarly to BTC, there have been significant outflows from The Grayscale Ethereum Trust (ETHE) that could continue for some time, with ether’s price having surged in the two weeks leading up to the spot ETFs launch.
“Will it play out similarly for ETH? Can’t know for sure, but institutional demand for crypto assets is growing, and ETH has now joined BTC as the only two crypto assets with an ETP wrapper,” Leon said.